Let’s face it: moving is about as fun as trying to assemble furniture without the instruction manual. It’s a whirlwind of packing lists, mountains of moving boxes, and enough back-and-forth with your agent to make your head spin. And just when you think you’ve got it all figured out, there is one more thing to tackle: the financial arrangements for the move.
Now, you might be tempted to think that once you have paid the movers and the broker you are good to go. Well, let me tell you, my friend, that’s hardly ever the case, especially when you’re moving to one of the most expensive cities in the world. Cue the dramatic music.
If you’re checking off your checklist for moving to a new city, there are plenty of financial considerations to keep in mind, especially if you’re relocating to NY. And we are here to talk all about it — from building a security blanket to the formidable housing situation. Buckle up as we dive into everything you need to know before moving to New York.
1. Building a Security Fund
Take your time with the move. Let the decision to relocate to New York simmer. And if you have still got the nerves, that is when you start the planning. During your move to New York, there are plenty of expected and unexpected expenses that will arise. To ensure you don’t lose the game before it even begins — build yourself a financial security net.
Many people would consider $15,000 an acceptable amount for a good fresh start in New York, while others could deem it very low. It all depends on your choice of neighborhood, the type of apartment you are looking to rent, and your job prospects.
A good rule of thumb is to have at least four months of rent in your security fund when moving. Your security fund should last while you settle into the new city, find work, and arrange your budget. Aside from rent, there are plenty of unexpected expenses that might pop up when you first make the move, like trouble with your furniture, a medical emergency, or the never-ending list of items you forgot you needed for the new place.
If you are lucky, you won’t have to dip into it at all. But if you do, having a security fund can make the whole situation a lot less nerve-wracking. Trust me, you’d rather be prepared and not need it than find yourself in a tight spot without a financial safety net. It’s one of those things you might regret not having, but you’ll never regret having it.
2. From A to Z: Everything About Moving Expenses
If you have friends or family to lend a helping hand (and some muscle), the DIY approach is definitely the way to go. Not only is it more budget-friendly, but it also offers you greater flexibility and control over the entire process. This option is particularly advantageous if you are moving locally or don’t have a truckload of belongings to transport. College students, in particular, tend to fall into this category, as they often have a more minimal collection of personal items.
But if you are not up for the extensive planning and stress of moving by yourself, it is best to leave it to the movers. That way, you won’t land in your new home with a broken-legged chair or half of your crockery.
Check out the movers in your area to compare rates and assess their reviews. Make sure that the company is licensed and insured. When it comes to moving, our Diggz members have got some sweet options! You can tap into our partnerships with iMoving and Clutter to get some handy quotes. If you prefer local movers, check out Piece of Cake Moving, Moishe’s, and OZ Moving — they know the NY scene like the back of their hand. And if you’re making a big cross-country move, Safeway Moving Inc. is a reliable choice, available in all 50 states.
When making a local move of about 100 miles, you can expect to pay an average of $1,400 for moving. However, for out-of-state moves, the average cost can jump anywhere from $2,200 to $5,700. For eg., a move from Poughkeepsie to Buffalo will cost you an average of $1,956 for a 1-bedroom. But a move from California to New York can cost a whopping $6,600.
Don’t faint just yet, these numbers are for a complete thorough move. Most people cut down on moving expenses by going for a light move. This means focusing on essentials like furniture, kitchen accessories, and the like. If you’re keen on planning ahead for your moving costs, a handy tool to consider is a Moving Cost Calculator. You can tailor it according to your specific requirements.
Additionally moving off-season, i.e., Oct to April, can help you get the best deals and minimize this hefty expense. In any case, make sure you keep a record of your moving expenses, if you moved for a job, you can deduct it from your taxes.
3 .Paper Trail Prep: Gather the Essential Documents
Moving to New York is basically just paperwork… paperwork… and on top of that, some more paperwork. From apartment applications to job searches, it seems like there’s always another document you need to provide. Here is a breakdown of some key documents you would need:
First and foremost — employment letters. These letters serve as proof of your job status and income and are required by landlords to assess your ability to afford and pay the rent. Next up, you’ll want to gather your salary stubs and bank statements of up to 3 months to show concrete evidence of your income and financial capability.
References can also be incredibly valuable during the application process. Reach out to previous landlords or employers who can vouch for your reliability and trustworthiness. Having positive references can give you an edge over other applicants and help landlords feel more confident in renting to you.
If you have a service animal, make sure to gather any necessary certificates or documentation. Landlords are legally required to accommodate service animals, but it’s helpful to have the proper paperwork to ensure a smooth transition into your new home.
Lastly, don’t forget to update your address with the post office, banks, insurance companies, and any other relevant entities. This will ensure that your mail and important notifications are redirected to your new address without any interruptions.
And before you sit back and relax, double-check your documents to ensure they are up-to-date and easily accessible. The last thing you need during moving is rummaging around the boxes looking for your bank statement.
4. New York’s Housing Scene
If there’s one thing you absolutely need to know before moving to New York that could potentially make you pull your hair out, it’s the housing. When it comes to NY, neighborhoods make a ton of difference regarding rental prices, availability, and location. The city has the low-rent neighborhoods like Central Harlem and higher, more affluent neighborhoods of the Upper East Side or the West Village.
And if you are just moving into NY, there might be a few surprises awaiting you. The broker’s fee is like NY’s worst open secret. In most cases, broker’s fees constitute 15% of the annual rent or one month’s rent. Yep, it’s no joke. So, when budgeting for your housing, make sure to factor in these extra costs along with the security deposit.
Here’s the deal: If you’re incredibly fortunate, you might stumble upon a unicorn of an apartment — one that doesn’t charge any fees. But hey, this is New York we’re talking about, and things are rarely that simple.
However, if you decide to enlist the help of a broker to connect you with the listing agent, you’ll have to cough up that broker’s commission. It’s their way of getting paid for their matchmaking skills.
So, the choice is yours: take matters into your own hands and potentially save some cash, or team up with a savvy broker who knows the ins and outs of NY and can help you find its hidden gems. It’s all about weighing the options and deciding what works best for you.
What would you need to secure an apartment in NY?
First off, a lot of paperwork. As we discussed above, the application process to secure an apartment is pretty lengthy. Your potential landlord will require your employment letter, pay stubs, bank statements, tax returns, and possibly more to assess your financial capability to pay future rent. Aside from the documentation, the application process comes with a variety of fees and other requirements. To summarize, here is a list of the typical documents you will need for the application:
- Employment letter, including job title, salary, and length of employment
- Three-month pay stubs
- Three-month bank statement
- A copy of your social security card
- Credit score
- Tax returns
- CPA letter stating your income (for self-employed or business owners)
- Reference letters
- Application fees — $20 to $100
- Photo ID
As a rule of thumb, when applying for housing, make sure your annual income is 40 times the monthly rent. And more importantly, have an annual income. Most fresh graduates and young adults make the mistake of moving to NY without a job lined up or at the very least, a clear job search plan. Even if you set out with savings of $20,000, with broker’s fees, security deposits, application fees, etc., it will burn off much more quickly than you might have anticipated.
It can take you about a month or two to find an apartment, and even more, if you are moving in the summertime. The competition is fierce, giving landlords plenty of options and reasons to reject potential tenants. To increase your chances, having a good credit score is beneficial. Young college students with limited credit histories may have difficulty securing an apartment. In such cases, it’s best to consider obtaining a guarantor. A guarantor is someone who can step up and agrees to pay if you happen to miss a payment. If you fail to pay rent, the landlord will have someone to turn to, making you a much more reliable candidate. If no one in your family could act as a guarantor, you can use services like The Guarantors to help out secure the apartment.
Most importantly, before making the move you should have enough money in your account for at least 3 months of rent. The average rent for a 2-bedroom apartment in NY is $4,295, which would make a total of $12,885. Yikes.
But hey, there’s a silver lining. If you’re willing to embrace the joys (and quirks) of having a roommate, you can slice that rent right down the middle and save some serious cash.
5. Getting Around NYC on a Budget
The best thing about NYC — aside from its vibrant energy and endless opportunities — is its well-connected transit system. Most residents opt for a monthly unlimited Metro Pass for $127, which is slightly higher than other comparable cities, such as Chicago’s $75/month. Alternatively, they can take a Citibike for $19 a day for short trips. If you have an account with CitiBank, you can even get a 10% off on its Annual Membership. However, that only pays off if you happen to be a frequent user, getting your money’s worth.
Now, let’s talk cars. In Manhattan or Brooklyn, having a four-wheeled companion is like trying to fit a square peg into a round hole — more of a hindrance than a convenience. And you will have to pay an arm and a leg for parking. But, if you are heading to Staten Island, a car becomes an absolute necessity.
Aside from residents in neighborhoods that are more like suburbs, New Yorkers prefer to take the bus. Why? Well, for starters, gasoline prices here are 4.1% higher than the national average. Ouch! Combine that with the infamous parking space hunt, and you will understand why most residents prefer to ditch the car and embrace the ‘joys’ of public transport. Ultimately, bringing your car along in the move depends on the neighborhood you are moving to and the location of your job.
6. Apply for Temporary Accommodation
It can take you about a month or two to find an apartment, this includes searching for a place, going through the process, and waiting for the move-in date to arrive. Until then, you will need to plan your accommodation. If you have friends or family in the area, they might be able to host you for a week or two — more than two and even they might start throwing hands.
It’s best to plan for temporary accommodation before moving to NY. This could mean looking at hotels around the area, which can be very expensive, especially in the heart of New York. You can also book an Airbnb as a short-term rental, but these also tend to come at a premium, especially for shorter stays.
Another great option is looking at coliving apartments and extended stay apartments while you search for an apartment or a job. These apartments are usually large spaces with common areas. Coliving apartments are great if you want to make physical tours of your prospective apartments before signing the lease. Diggz, in particular, offers a wide range of coliving options that cater to different preferences and budgets.
By opting for coliving or extended stay apartments, you can have a comfortable home base while you navigate the challenges of finding a more permanent residence and job. It’s like having a temporary home away from home, without the stress of rushing into a long-term commitment.
If you do end up having to plan for temporary accommodation, this is another big cost that you must factor into your moving budget.
Moving to NY: Where Dreams Get Tough, but Tough Dreams Get Going!
Moving to New York might just be the best thing you do in your life. You might find the dream life — the six friends in a cozy cafe, a thriving career, and perhaps even a purple apartment. But as with any move, it comes with some hefty costs — and since you are moving to NYC, just multiply those costs by four.
So here you go — your ultimate moving checklist with all the financial considerations you will need to make before the move. So gather up those important documents, secure yourself a fabulous apartment, and remember, even if things don’t go according to plan, you’ve got your trusty security fund to cushion any unexpected bumps along the way.
With a little bit of preparation and a whole lot of determination, you’re ready to take on the bright lights and endless possibilities of New York City!